Overview
When a cheque given to repay a debt or liability is returned unpaid for insufficient funds (or because it exceeds the arrangement with the bank), the payee can pursue a criminal complaint under section 138 of the Negotiable Instruments Act, 1881. The law sets strict steps and deadlines: the cheque must have been presented within its validity, a written demand notice must be sent within 30 days of receiving the bank's information of dishonour, and the drawer then has 15 days from receiving the notice to pay.
If the drawer doesn't pay within those 15 days, the complaint must be filed within one month after that period ends, generally in the court where the payee's bank branch is. Missing a deadline can end the criminal remedy, so the notice must be sent quickly and correctly.
Our team checks your dates and documents, and the notice is drafted and sent by an advocate we work with. If the money isn't paid, the advocate can file the complaint for you.
Who needs it
- Anyone whose cheque was returned with 'funds insufficient' or a similar reason
- Businesses with dishonoured customer cheques
- Lenders with returned repayment cheques
Documents required
What we usually ask for. Our team confirms the exact list for your case before anything is filed.
- The original dishonoured cheque
- The bank's return memo with the date and reason
- Proof of the debt: invoice, loan agreement, ledger, messages
- The drawer's correct address
How it works
- 1
Check the dates
We check the cheque date, presentation date and the date you got the return memo, so the notice goes within 30 days.
- 2
Draft the notice
An advocate drafts the demand notice for the cheque amount with the facts the law requires.
- 3
Send with proof
The notice is sent by registered or speed post (and other modes where useful) and the proofs are kept.
- 4
Wait 15 days
The drawer has 15 days from receiving the notice to pay.
- 5
Complaint if unpaid
If unpaid, the complaint must be filed within one month after the 15 days end. The advocate can file it.
Typical timeline
Notice within 30 days of receiving the bank's information of dishonour; 15 days for the drawer to pay after receiving the notice; complaint within one month after those 15 days end. These deadlines come from the Negotiable Instruments Act.
Prefer to do it yourself?
- Free legal notice format — Our general legal notice format, with what every notice should include.
Get a free quote
Answer a few questions and our team will contact you. It takes about two minutes.
Official sources
The government portals and laws this page is based on:
Please note